AAP study guide
AAP · Work through your exam, one topic at a time.
The Accredited ACH Professional (AAP) is a professional credential offered through Nacha, the organization that governs the ACH Network - the payment system behind Direct Deposits and Direct Payments reaching every U.S. bank and credit union account. The AAP study guide has 8 sections and about 2,596 words.
01The ACH Network and the Payments Industry
The ACH Network is not a real-time authorization network. Entries are transmitted in files, sorted into batches, value-dated with an Effective Entry Date, and settled on a net basis across participants' Federal Reserve accounts.
327 words, about 2 min02ACH Rules, Regulations, and Compliance
Nacha Operating Rules - binding contractually, through the ODFI's agreement, not by statute. Regulation E - federal consumer protection: error resolution, stop payments, disclosures, remittance transfers.
302 words, about 2 min03ACH Payment Types and Applications
PPD - prearranged payment or deposit to/from a consumer account (payroll, recurring bills). WEB - consumer authorized over the internet; debits require commercially reasonable fraud screening.
333 words, about 2 min04Origination and Receipt of ACH Entries
Every entry needs a valid authorization from the Receiver, the correct SEC code and transaction codes, a complete 94-character record format, and an Effective Entry Date the Originator intends for settlement. The ODFI may not alter the amount, Receiver name, account number, or individual identification once the entry is originated - a favorite exam trap.
338 words, about 2 min05Returns, Notifications of Change, and Exception Handling
A return sends the money back; a Notification of Change moves no money and only forwards corrected information. Confusing the two is the most common error in this domain.
310 words, about 2 min06Risk Management and Fraud Prevention
ODFIs manage ACH risk with credit and exposure limits set for each Originator and Third-Party Sender, periodic underwriting review, and daily monitoring of volume, dollar value, and return activity. Exposure is the maximum dollar amount outstanding before settlement - not the same as a credit line.
320 words, about 2 min07Third-Party Service Providers and Third-Party Senders
A Third-Party Sender (TPS) acts as an intermediary between an Originator and an ODFI - it transmits entries but is not the Originator and does not hold the Receiver's account. Payroll processors, payment facilitators, and billing aggregators are typical TPSs.
336 words, about 2 min08Same Day ACH, IAT, and Emerging Payments
Same Day ACH runs on the existing network through three daily windows: 1. ET , settled by 1:00 p.m.
330 words, about 2 min